Understanding Draft Remittance

You remit (deposit) the draft to the bank so that it can collect the funds from the customer's bank. In certain countries, draft remittance is an optional step in the draft process. You can remit drafts to the bank for collection on either a tape or by printing a paper register. Generally, you must have complete bank account information for the customer to use an electronic format.

Before you remit the drafts to the bank, you can create a register to group drafts by bank account. The system updates the draft records with bank account information and assigns them a register number, which you can use as data selection when you run the Draft Remittance program (R03B672).

If you do not create a register, the system updates the draft records with the bank account information when you run the Draft Remittance program.

You can run the draft remittance batch process proof or final modes.

In proof mode, the system:

• Selects accepted drafts (Draft Status 4) from the F03B13 table.

• Verifies that the GL date is within the company's GL fiscal period.

• Prints a report of the drafts to be remitted.

If you run the A/R Draft Remittance Paper Format program (R03B672P) in final mode, the system performs the same actions that it does in proof mode, and it also:

• Creates a new batch header record in the Batch Control Records table (F0011) for the remittance batch.

• Changes the payment status of the draft invoice records in the F03B11 table from D (or #, if the register was created previously) to G (draft deposited, not due).

• Changes the draft status of the records in the F03B13 table and draft invoice records in the F03B11 table from 4 (Accepted) to 3 (Remitted - Cash or Discount) or 2 (Remitted - Contingent).

• Creates these records in the F03B14 table, if the draft is remitted for cash or discount:

  • A record that reverses the acceptance status of the draft.

  • A record that enters a remittance status of 3 (Remitted - Cash or Discount) for the draft.

• Creates these records in the F03B14 table, if the draft was remitted with contingent liability:

  • A record that reverses the acceptance status (draft status 4) of the draft.

  • A record that enters a remittance status or 2 (Remitted - Contingent) for the draft.

  • A record that accounts for the contingent liability.

• Creates one record for each draft in the Draft Remittance table (F03B672).

• Automatically removes records from the F03B672 table when it creates the pdf file that you print.

When you run the A/R Draft Remittance Magnetic Tape Format program (R03B672T) in final, the system performs the same actions that it does in final mode for paper, and it also:

• Updates the Text Processor Header table (F007101).

• Updates the Text Processor Detail table (F007111).

• Assigns the batch number from Next Numbers 00/07.

  Note: You must use the Text File Processor program (P007101) to purge batches from the text processor tables (F007101 and F007111). When you purge draft remittance batches, the system also removes the records from the F03B672 table.

It is recommended that you run the draft remittance process in proof mode before you run it in final mode. This allows you to review and correct errors prior to updating records. If the system finds errors when you run the report in final mode, it prints an error message on the report.

After you remit drafts, you approve and post the remittance batch to the general ledger. The system creates the appropriate journal entries.